September 23, 2019

North Channel Bank Accepts Danish Judgment

The German bank North Channel Bank has today at the district court in Glostrup agreed to pay a fine of DKK 110 millions (ca. Mio. € 14,7) for its role in the so-called dividend tax case as part of the criminal prosecution in the case.

The fine is in accordance with current Danish legal practice.

The management of North Channel Bank has made the following statement:

“We would like to express our satisfaction as the bank’s new management with the fact that the judgment brings this matter to a close. We have spent all our energy over the last 2 years and ½ to clean up the bank and give it a new and sustainable business model, while at the same time working closely with the authorities in Denmark, Belgium and Germany to clarify as much as possible the role of the bank and certain individuals in connection with the banks activities.

With today’s judgment, we have taken a big step forward in a direction that will ensure the survival of the bank and thus more than 50 jobs for colleagues who had nothing to do with these activities. It also enables us to find new, reputable investors and thus secure a good future for the bank.

Before North Channel Bank accepted a legal fine today, September 23, the bank reached an agreement with all creditors involved in the proceedings that will allow the bank to continue its business activities and ultimately be sold to new owners.

The agreement is a result of the fact that the current management of the bank has negotiated over an extended period of time with the tax authorities of the relevant countries in order to obtain an overall solution for the future of the bank. Such an agreement has now been reached. The current managing directors had nothing to do with the transactions, which caused damage to the Danish and Belgian state.”

The content of the agreement is subject to customary confidentiality provisions.

Further Languages:

• Message in Danish / Besked på dansk (PDF)
• Message in French / Message en français (PDF)

North Channel Bank GmbH & Co. KG was founded in 1924 as the privately owned bank Bankhaus Oswald Kruber, located in Berlin. In 2009, a group of North American investors with expertise in the US Life Settlement sector acquired the bank and renamed it North Channel Bank. In the following years the bank developed into one of the leading institutes in US Life Settlement financing. 2013 with the takeover of its affiliate NorthStar Life Services, LLC, Irvine, California the bank gained direct access to and influence on a reliable, experienced and renowned service provider. Today, in addition to financing, the bank also offers investments in US Life Settlements. In the structured finance division the bank focuses in particular on financing in the renewable energies sector, (especially equity interim financing), capital goods financing, and acquisition finance.